The banking sector in Bangladesh suffers due to high interest rate differential. This puts pressure on the banking sector to increase profits due to the higher interest rate spread. In the financial and economic context of Bangladesh this would not be possible, resulting in reduced market competitiveness. This is one of the characteristics of monopolistic competition (MonzurHossain, 2010). Second, Bangladesh's banking sector is quite open and offers few barriers to entry. Foreign banks can also operate with the advantage that the interest rate spread in their base country is lower. It has been argued that measures should be taken to improve competition in the market, but the measures have not borne fruit. looking at the market structure where banking facilities will have to be provided to the masses who will depend on it